Analysts: An AT&T foray into Europe carries numerous risks

AT&T (NYSE:T) CEO Randall Stephenson once again kindled speculation this week that the company is interested in deals in Europe, but a push across the Atlantic carries numerous risks, analysts argue. Speaking at the Goldman Sachs Communacopia conference this week, Stephenson would not reveal any further details other than to say AT&T would welcome significant deals at the right price. "If there were opportunities that presented a good value, of course we would do it," he said. He also said the LTE and mobile data explosion that has overtaken the United States is migrating to Europe, and the market there is "going to evolve very quickly." Still, analysts argue AT&T would face an array of challenges, including fragmented regulatory regimes, price-sensitive markets and not enough economies of scale to make a major deal worthwhile. Stephenson acknowledged some of the cons himself--he noted, for example, that spectrum licenses are usually issued with an indefinite term in the United States but are mainly limited to 10-12 years across most countries in Europe. Article

Sponsored by ADI

What if we were always connected? With the help of our advanced wireless technology, even people in the most remote places could always be in touch.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

AT&T has shifted its Cricket prepaid brand to a 100% authorized retailer model, according to Wave7 Research.

The FCC decided to extend the timeline for responding to Huawei's application for review until December 11.

All operators are trying to understand the intersection between their networks and hyperscale networks. But who gets the lion's share of the revenue?